HR insurance for employment tribunal claims.
HR insurance pays the legal costs of defending an employment tribunal claim, and certain awards, up to £100,000 a claim. Here is what it covers, what it doesn’t and how it works. Want to know more? Contact us.
- Legal costs and awards
- Comes with HR advice
- Fully regulated insurers only
Acas gets in touch
Before a claim reaches the tribunal, Acas contacts you and offers conciliation to try to settle it.
You call the advice line
Cover of this kind depends on taking the provider’s employment advice, and following it.
Specialists defend the claim
Legal fees and expenses for defending it are paid, within the policy limits.
If the tribunal finds against you
Covered awards, such as unfair dismissal compensation, are paid within the policy terms.
- £100,000
- for each claim or prosecution
- £1,000,000
- for all claims and prosecutions in one policy year
Typical limits. Exact cover and exclusions are in the policy summary.
From 1 January 2027, employees can claim unfair dismissal after six months, and the cap on the compensatory award goes.
834 employment tribunal decisions were published on GOV.UK in October 2026, and 330 of them involved an unfair dismissal claim. See the tribunal tracker
What a policy pays for, and what it doesn’t.
Good cover is clear about both. These are the usual terms for employment legal protection from a fully regulated insurer, with limits of £100,000 for each claim and £1,000,000 for all claims in a policy year. Each policy summary sets out the exact cover and exclusions.
Ask us about coverUsually covered
- Legal fees and expenses for defending employment tribunal claims brought by employees
- Compensation awarded for unfair dismissal, and for some other claims
- Legal costs if your business is prosecuted under health and safety law
Often excluded
- Anything that happened before your cover started
- Claims where you did not take the provider’s advice, or did not follow it
- Some awards, such as automatically unfair dismissal and some discrimination, harassment and victimisation awards
- Money you owe anyway, such as unpaid wages or redundancy pay
- Fines and penalties imposed by a court
- Personal injury claims, which employers’ liability insurance is for
- Protective awards in collective redundancies and TUPE transfers
The one condition that matters: take the advice, then follow it.
Cover of this kind is advice-dependent. If an issue with an employee could lead to a claim, you call the provider’s employment advice line before you act, and you follow what it tells you. Skip that step, or go against the advice, and the policy may not pay.
That is also what makes it good value: the advice keeps most problems from becoming claims. HRjoy can help with the groundwork the advice relies on, such as contracts, policies and fair procedures.
How HR insurance usually works.
The policy sits alongside HR advice. This is the usual shape of it.
- 1
It comes with HR advice
Cover is usually sold with an employment advice service, and paid monthly as part of that service fee.
- 2
You get a policy summary
A short document sets out what is insured, what is not, the limits and your obligations, before you commit.
- 3
It runs for a year
The policy usually runs for a year from the start date and renews automatically, with 14 days to cancel at the start.
- 4
You call early
When an issue with an employee appears, you call the advice line before you act, not when a claim lands.
Not the same as employers’ liability insurance.
Employers’ liability insurance is compulsory and covers injury and illness. HR insurance is optional and covers employment disputes. Most employers need the first; many choose the second.
| Question | Employers’ liability insurance | HR insurance |
|---|---|---|
| Is it a legal requirement? | Yes, as soon as you become an employer, with limited exceptions | No, it is optional |
| What it pays for | Compensation if an employee is injured or becomes ill because of the work they do for you | Legal costs and certain awards in employment disputes and tribunal claims |
| Minimum cover | At least £5 million, from an authorised insurer | Set by the policy you choose |
| If you do not have it | You can be fined £2,500 for every day you are not properly insured | You meet any legal costs and awards yourself |
Employers’ liability facts from GOV.UK.
Questions about cover.
Something else? Ask us.
What is HR insurance?
HR insurance, sometimes called employment legal protection or tribunal insurance, pays the legal costs of defending employment claims and certain compensation awards. It is usually sold alongside an employment advice service, and the cover depends on taking and following that advice.
Does it cover discrimination claims?
It depends on the policy. Some cover compensation for some discrimination claims but exclude others, such as direct discrimination, harassment and victimisation. GOV.UK notes there is no limit on compensation in discrimination cases, so check this part of the policy summary carefully.
Can I get cover for a claim that is already on its way?
Policies of this kind do not cover anything that happened before the cover started. If an issue is already live, take advice on it now. Cover is for the claims you have not seen coming.
How much cover does a policy give?
A typical policy pays up to £100,000 for each claim or prosecution, and up to £1,000,000 for all claims and prosecutions brought against you in one policy year. The level of cover can depend on the service you take, so check the policy summary.
Where does cover apply?
Typically the whole of the UK: Great Britain and Northern Ireland, plus the Isle of Man and the Channel Islands.
Who provides the insurance?
We only deal with fully regulated insurers: insurers authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the PRA. We would not deal with anyone else. Cover is usually sold with an HR advice service. If you want to know more, contact us.
Why look at it now?
From 1 January 2027, employees can claim unfair dismissal after six months’ service instead of two years, and the cap on the compensatory award is removed. More employees can bring a claim, and the most an award can be will rise.
Related answers
- Do employers need employers' liability insurance?Yes. In Great Britain, most employers must have employers' liability insurance as soon as they become an employer, with cover of at least £5 million from an authorised insurer. It helps pay compensation if an employee is injured or becomes ill because of their work. Some employers are exempt, and Northern Ireland has its own legislation.
- Does employers' liability insurance cover employment tribunal claims?Not as a legal requirement. In Great Britain, the law requires employers' liability insurance to cover liability for employees' bodily injury or disease arising from their work. The law does not mention employment tribunal claims such as unfair dismissal, discrimination or unpaid wages, so employers should treat them as a separate risk. What any particular policy includes depends on its terms.
- What can an employment tribunal claim cost an employer?It depends on the claim and the outcome. In Great Britain, unfair dismissal compensation is a basic award plus a compensatory award, currently capped for most claims at the lower of £123,543 or 52 weeks' pay. Discrimination compensation has no limit. Each side usually meets its own legal costs, but a tribunal can order costs in some cases. Claimants pay no fee.
This page is general information about employment legal protection insurance. HRjoy only deals with fully regulated insurers, authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the PRA. HRjoy is not an insurer and does not give insurance advice. Cover, limits and exclusions depend on the policy: always read the policy summary and the full policy wording before you buy.
Sources: Being taken to an employment tribunal · Employers’ liability insurance · Plan to Make Work Pay and Employment Rights Act: timeline update · Employment tribunal decisions (GOV.UK).
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